. Theory 4 (1972)] by utilizing stochastic monotonicity in a dynamic system. The construction of two boundary distributions …

targets (inflation and output gap) are forward-looking variables in the new-Keynesian theory …

, creates conflicts between short-term considerations a discounting scheme has to be consistent with observed behaviours and … long-term ethical issues a discounting scheme must not favour the current generation over future ones. To overcome this … conflict, the present article proposes a prescriptive consumption discounting scheme that applies different discount rates (i …